It's not too often that you see an ASX All Ordinaries Index (ASX: XAO) stock explode by 54% in just a few trading days. Yet that's exactly what we've seen with the EML Payments Ltd (ASX: EML) share price over this week.
On Monday afternoon, this All Ordinaries payments stock closed at 75 cents a share. But today, those same shares are going for $1.18 at the time of writing.
EML shares have put on a hefty 9.77% today alone. Coupled with the 30.67% gain we saw on Tuesday, the 10.2% lift that happened on Wednesday, and today's gains so far, EML shares are now up a whopping 57.33% since Monday's closing price.
This gain is enough to turn a $10,000 investment in this All Ordinaries stock on Monday into $15,733 today.
So what on earth has caused this explosive share price runup over this week?
Why has this All Ordinaries stock rocketed 57% in three days?
Well, we don't have to look too far. It appears that the catalyst for this share price growth came on Tuesday in the form of EML's latest full-year earnings report.
As we covered at the time, these earnings saw EML report a 9% growth in its revenues up to a record high of $254.2 million. The company had previously guided for a range of between $235 and $245 million.
Despite this, the All Ordinaries stock also revealed a group underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) drop of 28% to $37.1 million. Again, that beat out the previous guidance of $26 to $34 million.
Underlying net profits also fell, down 85% to $4.9 million. A caveat though, this figure includes an after-tax impairment of $258.9 million.
Despite these latter figures, investors were clearly delighted with this earnings report from EML. That was probably thanks to the handy guidance beats that the company delivered.
This sentiment was probably given a boost yesterday by an ASX broker upgrade. As we discussed then, broker RMC gave the EML share price a post-earnings outperform rating, supported by a 12-month share price target of $1.40. That would give investors another 18.64% in upside from where this All Ordinaries share is today.
So it looks like this week's spectacular performance from the EML share price can be attributed to these latest earnings. Perhaps kicked along by that broker upgrade.
After these gains, the EML share price is now up a whopping 90.3% in 2023. It's also up 25.5% over the past 12 months:
